Parkson Retail sales continue to slide
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Parkson Retail Asia has flipped from a S$2.9 million (US$2 million) net profit a year ago to a net loss of $2.23 million for its second quarter.
This is despite a 7.4 per cent year-on-year rise in revenue to $111.14 million, with Parkson attributing its red ink to weak same-store sales growth as well as losses by some new stores and businesses.
For the six months to December 31, the department-store group had a net loss of S$7.42 million, compared to a net profit of $52.36 million for the same period the previous year. Revenue rose 4.2 per cent to $204.48 million.
Parkson Retail Asia says its performance in Malaysia will remain muted because of “fragile” consumer sentiment, while rising competition will make Vietnam challenging.
Meanwhile, its business in Indonesia could be affected by the changing retail landscape in Jakarta, it says.
In Myanmar, its store at FMI Centre in Yangon will be closed in the third quarter for property redevelopment by the landlord, with a replacement store scheduled to open later in the year.
Questions & Answers
Q.What were Parkson Retail Asia's financial results for the second quarter?
What were Parkson Retail Asia's financial results for the second quarter?
Parkson Retail Asia recorded a net loss of S$2.23 million in the second quarter, a significant shift from a S$2.9 million net profit a year ago. This occurred despite a 7.4 per cent year-on-year revenue rise to S$111.14 million.
Q.Why did Parkson Retail Asia report a net loss despite increased revenue?
Why did Parkson Retail Asia report a net loss despite increased revenue?
The company attributed its net loss to weak same-store sales growth, alongside losses from some new stores and businesses. These factors outweighed the 7.4 per cent increase in revenue for the quarter.
Q.Which specific markets does Parkson Retail Asia expect to face challenges?
Which specific markets does Parkson Retail Asia expect to face challenges?
Parkson expects its Malaysian performance to remain subdued due to fragile consumer sentiment. Vietnam will be challenging because of rising competition, and the changing retail landscape in Jakarta could affect its Indonesian business.
Q.What is happening to Parkson's store in Myanmar?
What is happening to Parkson's store in Myanmar?
The Parkson store at FMI Centre in Yangon is scheduled to close in the third quarter for property redevelopment by the landlord. A replacement store is planned to open later in the year.
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